ABC Company purchased machinery for $120,000 on January 1, 2023. The machinery has an estimated useful life of 8 years and a salvage value of $10,000. ABC Company uses the double-declining balance method for depreciation. Calculate the depreciation expense for the year 2024.

Requirement:

• Present the depreciation schedule for the machinery for the years 2023 and 2024.
• Explain how the double-declining balance method works and its impact on depreciation expense.